These Mining Stocks Have Potential In The Market
Many mining stocks have pulled back as vaccine news has slowed down metal prices. For instance, many analysts believed that the price of gold wouldn’t fall under $1,850, and look at it now. As of November 30th, gold prices are still under $1,800. The world economies are in a state of volatility at the moment. Nobody knows when things can begin to recover. In many places, lockdown is starting up again due to increasing COVID-19 cases. But the factor countering that is the vaccine news, which hurts the price of many precious metals.
The election plays a factor in all of this too, as metal prices could go up after the inauguration. Jobless reports, stimulus, so many things are affecting the cost of mining stocks. On the day of the 30th prices have been able to stay rather stable as the stock market falls. In general, mining stocks have been a mixed bag. Some analysts think gold will shoot over $2000 in 2021, others don’t. But in 2020, many precious metals are still at big high points that have not been seen for years. Let’s take a look at four mining stocks that have potential going into December.
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Top Mining Stocks To Watch In December: Avino Silver & Gold Mines Ltd.
Let’s first discuss Avino Silver & Gold Mines Ltd. (ASM Stock Report). ASM stock has been improving its momentum a lot this year. Avino Silver & Gold Mines Ltd. is a company that acquires, explores for, mines, and advances mineral properties. Its properties are primarily located in both Mexico and Canada. Avino Silver & Gold Mines owns 42 mineral claims, and leases four mineral claims. In addition to this, it has 24 exploitation concessions covering 1200+ hectares of land. Now let’s take a dive in at what Avino Silver & Gold Mines has been up to recently.
On November 9th, this mining company released its consolidated financial results. These third quarter 2020 results announced the company reduced its debt liabilities by $2 million. Its revenue fell year over year despite this news. Its mine operating income went up 7% year over year though. It is clear that the negatives impacting Avino Silver & Gold Mines has been the COVID-19 pandemic and related closures. Avino was also impacted by a strike that has been occurring at the mines, but the company resolved the issue.
Top Mining Stocks To Watch In December: Freeport-McMoRan Inc.
Next up on this list of mining stocks is Freeport-McMoRan Inc. (FCX Stock Report). Freeport-McMoRan is a mining company that searches for gold, silver, copper, molybdenum, among other metals. It operates out of North America, South America, and Indonesia. The company searches for oil and gas as well. Freeport-McMoRan had 116 billion pounds of copper, 29.6 million ounces of gold, and more in its consolidated recoverable proven and probable mineral reserves as of December 31st 2019.
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The company announced its third quarter results for 2020 back on October 22nd. Its gold and copper sales rose 6-7% higher over July estimated numbers. Currently all of its operating plans are being “strongly executed” even though it experienced COVID-19 related struggles. It reported strong cash flow generation and cost and capital management during the quarter. As of November 30th 2020, Freeport-McMoRan’s FCX stock is at $23.40 a share on average. The company has lots of copper, which there is currently a shortage of. This could result in more positive momentum from Freeport-McMoRan. Only the future can tell what is to come from this mining stock though.
Top Mining Stocks To Watch In December: First Majestic Silver Corp.
Now let’s talk about First Majestic Silver Corp. (AG Stock Report). First Majestic Silver Corp. is a mining company that will acquire, explore, develop, and produce different mineral products. Its main product is silver, which it searches for at all of its mines. These mines include the San Dimas, Santa Elena, and La Encantada mines located in Canada and Mexico. This mining stock has seen positive performing throughout 2020. So let’s see what else First Majestic Silver Corp. has been up to recently.
In its third quarter earnings, revenue of $125.9 million was recorded. This was a new company record of +30%. It was able to achieve this number by selling off stockpiled metal inventory kept from the previous quarter. Rising metal prices and this stockpiled metal inventory have proven well for the company recently. Its mine operating earnings grew 73% as well. At the moment AG stock isn’t performing the best because of metal prices, but is still holding onto some of its momentum.
Top Mining Stocks To Watch In December: Gold Resource Corporation
The final mining stock to watch is Gold Resource Corporation (GORO Stock Report). Gold Resource Corporation will explore for, develop, produce, and sell various minerals. These minerals include gold, silver, copper, lead and zinc deposits. These operations are executed in the United States and Mexico. Its main project is the Aguila project that has 18 mining concessions over 24,372 hectares. That property is located in the State of Oaxaca, Mexico. Let’s look at the recent company history and news.
On November 25th, Gold Resource Corporation declared its November monthly divided. Its monthly instituted dividend of one-third of a cent per common share is payable to shareholders on December 23rd, 2020. Since July 2010, the company has returned $115 million to shareholders in consecutive monthly dividends. Shareholders also have the option to turn these dividends into physical gold or silver and take delivery. In its recent third quarter results the company reported a consolidated net revenue of $42.3 million. This was on production results of 12,575 gold ounces and 333,761 silver ounces in the quarter. The CEO and President Mr. Jason Reid said, “Despite the mandatory two-month shutdown in Mexico during the second quarter, our Oaxaca Mining unit is back to generating free cashflow while putting employee and community health and safety first.” This positive performance is why GORO stock has made this list.
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